Internet and Digital Technologies in Retail Industry (From Chapter Two)

Internetand Digital Technologies in Retail Industry (From Chapter Two)

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Internetand Digital Technologies in Retail Industry

DavidPrepletany (2013) discusses how internet and digital innovation hasaffected various industries in the economy. The article clearlydemonstrates how business operations in the retail sector havemorphed over time due to technological changes.

Relevance

Thisis well demonstrated in the chapter two under the subtopic “howinternet and digital technologies influence industry. The increasedlevel of competition in the retail sectors due to firms adoptinginternet and digital advancements has led to increased uptake ofdigital solutions. To sustain profitability and operationalefficiency, firms have adopted technological advancements (Fleras,2014).Furthermore, the power of intermediaries between the buyers andsellers is reducing the cost that customers are offered. As a result,the adoption of the technological improvements has enabled theincrease in sales through reaching more customers across all worldmarkets (Fleras, 2014). Given the dynamic nature of the retailindustry, the customers have now been exposed to more e-commerce asretailers fight to get customers. Due to this, customers can be ableto shop online at the convenience of their homes (Prepletany, 2013).Moreover, product differentiation becomes easier to the firm todifferentiate them from their rivals (Chhabra, 2013).&nbspThe firms have been able to offer such services have had acompetitive advantage over their rivals. As a result, their profitshave exponentially grown indicating positive business development. Asa result, firms have been able to actively introduce new products andmarket with a satisfactory level.

Additionally,the growth of the middle class in both the developing and developedcountries that is characterized by busy schedules has made retailfirms to come up with creative ways of meeting their needs (Singh,2011).To ensure that quality and affordable prices are offered tothem retail industry players have resulted to online procurement tocut on cost (Chhabra, 2013).&nbsp.The group is known to have a taste for a variety of products tochoose from thus the retail market players have been known to seizethe opportunity to use digital media and the internet to reach them.Given the group’s strong purchasing power, firms that have beenable to integrate the digital solutions into their systems haveincreased profitability considerably. Since the middle class are ableto shop online and also have their goods delivered at their doorsteps. All this efficiency and level of success is attributed to theadoption of online procurement by the market players in the retailindustry.

Giventhe increased level competition in the retail industry due tointernet and digital technologies .Firms have forced have been forced to increase creativity on the online platforms to attract morecustomers. This is due to easement of the entry to market for newfirms in the retail industry. Moreover, to be able to collectcustomer’s purchasing patterns data firms in the retail sector haveintroduced the point of sale terminals (Chhabra, 2013). The datacollected is used in commissioning studies into the various buyingpatterns to be able to know the specific products that the operationsand business development officers could market at personal levels oftheir customers (Prepletany, 2013). An ideal example is customer thatis observed to be buying baby’s products. That could act as a leadthat she is expectant or already having a baby. To this effectvarious baby’s products could be marketed to her through e-mails,phone call and not limited to messaging. Through adoption of suchtechniques using digital solutions, the firms have been able toincrease their sales hence profitability (Singh, 2011). Moreover, thefirms decision on restocking inventory are well guided with up todate details collected. As a result, the retail firm is able torestock goods strictly following the customers demand. Given this,the problem of non moving stock is eliminated.

References

Fleras,A. (2014).&nbspRacismsin multicultural Canada: Paradoxes, politics, and resistance.

Prepletany,D. (2013). Theimpact of digital technologies on innovation in retail businessmodel.RetrievedFrom,http://projekter.aau.dk/projekter/files/77192390/Master_s_Thesis.pdf(Accessed on July 6, 2014).

Singh,J. P. (2011).&nbspGlobalizedarts: The entertainment economy and cultural identity.New York: Columbia University.

ICTinfluences on human development, interaction, and collaboration.Hershey, PA: Information Science